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KNOW YOUR

CUSTOMERS!
SUMMARY FOR CUSTOMER CENTRIC PRODUCT MANAGERS

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WHY IS IT
IMPORTANT?
Products revolved around customers (people),
not the other way around.
“I’m the one that having the problem!”

“I’m the one that can confirm the


problem!”
“I’m the one that can ensure that the
proposed solution addressed the
problem!”
CUSTOMER “I’m the one that in the end will pay you for
the solution!”* *direct & indirectly.

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FOUR BIG RISKS!
INSPIRED: How to Create Tech Products Customers Love by Marty Cagan.

Two out of four big risks to be tackled in


product development are customer related:

01 Value Risk will customers choose or buy it?

02 Usability Risk will customers know how to use it?

Feasibility Risk will we able to build it with


03 constraints: time, skill, and tech?

Business Viability Risk will we able to deliver


04 it with constraints: budget, legal, ethical, and reputational?

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FINDING PRODUCT-
MARKET FIT
The Lean Product Playbook by Dan Olsen.

Identify target customers and underserved


needs are the first two activities need to do.

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The importance of finding Product-Market Fit

The reason 80% of startup failed due to


unable to find Product-Market Fit.

The Wall Street Journal

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GET TO KNOW
YOUR CUSTOMERS
The Inmates Are Running The Asylum by Alan Cooper.

Personas help to capture hypotheses about


customers and to ensure everyone aligned.

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SEGMENTATIONS
There are ways to cluster the customer into
groups based on same attributes:
1. Demographic segmentation based on certain traits such
as age, gender, marital status, occupation, and education.

2. Psychographic segmentation based on psychological


variables such as attributes, opinions, values, and interests.

3. Behavioral segmentation based on relevant behavioral


attributes to takes a particular action and how frequently they do.
Example: Segmentation using RFM

4. Needs segmentation based on distinct needs.

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PARETO PRINCIPLE
Concentrate more on 20% of total personas
that deliver 80% of total income.

IDR 80 IDR 20

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TECHNOLOGY
ADOPTION CURVE
Crossing The Chasm by Geoffrey A. Moore.

Customers could also be divided into groups


based on technology adoption risk aversion.

Tech Visionaries Pragmatists who Risk-averse Skeptics who


enthusiasts! who want to adopt after a proven conservatives are very wary of
gain advantage track record. who only adopt innovations.
over status when pressured.
quo.

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CUSTOMER NEEDS
Maslow’s Hierarchy of Human Needs

Higher-level need does not really matter unless


the more basic needs below it are met.

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THE OPPORTUNITY
Dan Olsen’s Importance vs Satisfaction Framework

Customer needs: pain points, desires, or jobs


to be done that not fully satisfied yet.

High

Opportunity Competitive

Importance of
customers need

Not worth going after

Low High
User satisfaction with current solutions

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OPPORTUNITY GAP
The importance & satisfaction in opportunity
gaps are widen and shifted by some factors.

SOCIAL
TRENDS
Social and cultural trends and drivers
Reviving historical trends

ECONOMIC TECHNOLOGY
POWER ADVANCES
State of the economy State-of-the-art and emerging technology
Shift in focus on where to spend money Re-evaluating existing technology
Level of disposable income

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The example of opportunity created by social trends

In fact, you’re wearing the sweater that


was selected for you by the people in
this room from a pile of stuff.

Miranda, Devil Wears Prada

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CUSTOMER
JOURNEY MAP
Another tool that helps to identify opportunities
and to ensure everyone aligned (again).

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You can not hypothesize both persona & customer journey effectively
without talking with customers

Get out of the building (GOOB) and


gather the first hand experience about
customer and market needs!

Steve
Steve Blank
Blank

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MARKET RESEARCH
There is no other way to have empathy for our
customers except by getting to know them.

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Customers information often fraught with inaccuracies.

People don’t know what they want until


you show it to them.

Steve
Steve Jobs
Jobs

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RESEARCH
CHALLENGES
Customers will not serve you their problems in
a silver platter, mostly.

However, customers are much better at giving


feedback for the solution given to them.

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Example of customers are much better at giving feedback

A: Hey, what do you want to eat?


B: Hmmm, anything!
A: Okay, let’s get some sushi.
B: Argh, not sushi. Too much calorie!

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LISTEN CAREFULLY
Selective hearing by focusing more on problem
space of customers.

Problem Solution
Space Space

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Only refer to customers ideas for solution as preference only

If I had asked people what they wanted,


wanted,
they wouldtheyhave
would have
said: said:
FASTER
FASTER
HORSES.HORSES.
Henry
Henry Ford
Ford

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EXAMPLE
For Peduli Lindungi app, we could create a
questionnaire for gathering the importance &
satisfaction level of current provided benefits.
1) When you check in using Peduli Lindungi app,
how important is it to you that the process is fast & seamless?

Not at all Slightly Moderately Very Extremely

2) When you check in using Peduli Lindungi app,


how important is it to you that the process is fast & seamless?

Completely Mostly Somewhat Neither Somewhat Mostly Completely


Dissatisfied Dissatisfied Dissatisfied Satisfied Satisfied Satisfied

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EXAMPLE (CONT)
Let’s say we get the result like this:

Faster Vaccination
Check In Location

eHAC

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EXAMPLE (CONT)
Faster check in has the biggest opportunity
gap compares to others. So, we should
prioritize to improve this benefit.
Faster Check In eHAC Vaccination Location

Legend:
Fulfilled needs
Opportunity Gap

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COMPETITOR
ANALYSIS
Finding opportunities by analyzing competitors
user reviews, rather than features.

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DEFINE STRATEGY
Kano Model by Dr Noriaki Kano.

Plan for delivering product with better benefits


than alternatives or competitors.

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UBER USE CASE

Given conditions:
● Cabs don’t guarantee pickup, can take 45 mins
● Cabs aren’t as safe or clean as limos
● Car services require 1-3 hours notice
● Car services transfers average over $60 + tax

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UBER USE CASE (CONT)
Uber would be faster & cheaper than a limo
(car services), but nicer & safer than a taxi.

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WHAT’S NEXT?
Transform the opportunity into a great product!

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READ MORE
ABOUT IT HERE!

How To Create An Effective Product Strategy

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I also refer much to this fantastic book,
please buy and support the author.

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THAT’S ALL
FOLKS!

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